It's Thursday, and the stock market is feeling a bit more optimistic. Futures for the Dow Jones, S&P 500, and Nasdaq 100 are all pointing up, building on Wednesday's solid close. But there's a lot to unpack today, from a confident (some might say controversial) President Trump to a mixed bag of earnings that has some stocks moving sharply.
President Donald Trump was in a bullish mood on Wednesday, predicting that the stock market will keep climbing despite the ongoing conflict in Iran and volatile oil prices. He dismissed concerns, noting that the market keeps "hitting new records every day." His exact words: "Believe it or not, the stock market will go up."
Of course, Trump being Trump, he also stirred up some controversy by suggesting the Strait of Hormuz be renamed to "TRUMP STRAIT." That didn't sit well with Sen. Bernie Sanders (I-Vt.), who called Trump a "mad king."
Meanwhile, the bond market is sending signals. The 10-year Treasury yield is at 4.76%, and the two-year is at 4.35%. According to the CME Group's FedWatch tool, markets are now pricing in a 60.2% chance that the Federal Reserve will hike interest rates at its September meeting. That's a big deal, and it's something investors are keeping a close eye on.
Here's a quick look at how the major indices are performing in futures trading:
The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100, respectively, were higher in premarket on Thursday. SPY was up 0.089% at $765.84, while QQQ declined by 0.14% to $710.22.
Snowflake
- Snowflake Inc. (SNOW) surged 23.42% after posting upbeat financial results for the second quarter. The data cloud company is having a moment.
- MarketDash's Edge Stock Rankings indicate that SNOW maintains a strong price trend in the long, short, and medium terms.
Hewlett Packard Enterprise
- Hewlett Packard Enterprise Co. (HPE) declined by 4.90% despite beating fiscal 2026 third-quarter results. The company also raised its fiscal 2026 adjusted EPS guidance to between $3.75 and $3.85, versus the $3.43 analyst estimate, and raised its revenue outlook to between $45.96 billion and $46.99 billion, versus the $44.94 billion estimate. But the market wasn't impressed.
- MarketDash's Edge Stock Rankings indicate that HPE maintains a strong price trend in the short, long, and medium terms, with a poor growth score.
Netskope
- Netskope Inc. (NTSK) rose 10.47% as its second-quarter revenue grew 29% year-over-year to $220.5 million, with gross margin rising to 74%, driven by both new and existing customers. However, net loss widened to $110.8 million due to higher operating expenses and IPO-related stock compensation.
- MarketDash's Edge Stock Rankings indicate that NTSK maintains a weak price trend in the long term but a strong trend in the short and medium terms.
Lululemon Athletica
- Lululemon Athletica Inc. (LULU) was 0.50% higher as analysts expect it to post quarterly earnings of $1.79 per share on revenue of $2.46 billion after the closing bell. The yoga pants maker is in the spotlight.
- MarketDash's Edge Stock Rankings indicate that LULU maintains a weak price trend in the short, long, and medium terms, with a value quality score.
Cues From Last Session
Most sectors on the S&P 500 closed on a positive note on Wednesday, with communication services, materials, and health care stocks recording the biggest gains. However, real estate stocks bucked the overall market trend, closing the session lower.
Insights From Analysts
Edward Jones strategist Angelo Kourkafas expects the U.S. stock market and economy to face near-term volatility while remaining anchored by strong underlying fundamentals. Although rising bond yields, geopolitical conflicts, and typical seasonal headwinds present challenges, he sees resilience in economic activity.
Regarding market performance, Kourkafas emphasizes that historical September weakness should not cause panic, noting, "Underlying fundamentals remain constructive, in our view."
He points to solid third-quarter U.S. economic activity, robust corporate earnings growth, and ongoing AI spending as key drivers sustaining the broader market uptrend.
However, monetary policy remains a focal point. With interest rates in flux following hawkish Federal Reserve commentary, Kourkafas highlights the critical nature of upcoming economic data.
He notes that "Friday's employment report, and perhaps even more importantly next week's inflation data, will play a significant role in determining whether policymakers decide to raise rates in September."
Ultimately, Kourkafas expects that accommodative financial conditions and tight credit spreads will help investors navigate temporary political and seasonal uncertainty, keeping the long-term outlook positive.
Upcoming Economic Data
Here's what investors will be keeping an eye on Thursday.
- Initial jobless claims for the week ending Aug. 29, July's U.S. trade balance data, and Federal Reserve Governor Christopher Waller's remarks at the Reuters NEXT Newsmaker Interview will all be released by 8:30 a.m. ET.
- August's flash S&P U.S. services PMI will be out by 9:45 a.m., August's ISM services PMI will be released by 10:00 a.m., and Cleveland Fed President Beth Hammack alongside Chicago Fed President Austan Goolsbee will deliver special remarks at the 'Connecting Communities' online event at 3:00 p.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude Oil WTI futures were trading lower in the early New York session by 0.34% to hover around $90.70 per barrel.
Gold Spot US Dollar rose 1.17% to hover around $4,439.36 per ounce. The U.S. Dollar Index spot was 0.31% lower at the 99.2900 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.10% higher at $77,923.00 per coin over the last 24 hours.
Asian markets were mixed on Thursday as South Korea's Kospi, China's CSI 300, Australia's ASX 200, and India's Nifty 50 indices rose. Hong Kong's Hang Seng and Japan's Nikkei 225 indices fell. European markets were also mixed in early trading.
